GameStop is an American retailer of video games and consumer electronics. The company was founded in 1984 in Dallas, Texas, by James McCurry and Gary Kusin. Initially, GameStop was just one of several retail chains selling video games, but it grew rapidly through a series of acquisitions and mergers in the 2000s. Today, GameStop operates over 5,000 stores across the world, with a particular focus on the United States.
GameStop is primarily known for selling video games, consoles, and related merchandise. The company also offers a trade-in program that allows customers to sell their used games and consoles in exchange for store credit or cash. In recent years, GameStop has diversified its business by expanding into collectibles, toys, and other non-gaming merchandise. In addition, the company has made significant investments in esports and other forms of digital entertainment.
GameStop went public in 2002, with an initial public offering (IPO) that raised approximately $100 million. The company's stock price remained relatively stable for many years, but it experienced a dramatic increase in value in early 2021. This was due to a surge in interest from retail investors who organized on social media platforms such as Reddit. The investors sought to "squeeze" large institutional investors who had bet against GameStop's stock price (a practice known as short-selling), and as a result, the stock price skyrocketed. While the stock price has since fallen significantly, the event has become a significant moment in the history of retail investing and has prompted widespread discussion about the role of social media in financial markets.
Despite its recent volatility, GameStop remains a significant player in the video game retail industry. The company faces increasing competition from digital retailers such as Steam and Amazon, which have taken market share away from physical retailers like GameStop. However, GameStop's focus on collectibles, toys, and other non-gaming merchandise may help the company differentiate itself in a crowded market.